Turkey-based Toscelik Profil ve Sac Endustrisi AS, part of Tosyali Holding, has acquired the bankrupt state-owned Montenegrin steel mill Zeljezara Niksic, which had been put on sale in order to reduce the debt burden of Montenegro. Toscelik won the tender bidding €15.1 million (over $20 million).
According to local media reports, the state official in charge of Zeljezara Niksic commented, "The government assured me that the Turkish company is an ideal choice for the steel mill". Tosyalı Holding chairman Fuat Tosyalı was quoted saying that they aim to increase the annual capacity to 1 million mt in the first stage. As previously reported by SteelOrbis, the first auction was launched on a base of €30 million, but the lack of bids forced the Montenegrin government to halve its price.
The state-owned steel mill Zeljezara Niksic, the largest iron and steel producing company of the former Yugoslavia, produces non-alloy and alloy steel grades with an annual capacity of 300,000 mt and exports to over 30 countries including Germany, Russia and Turkey. The company which used to employ 7,000 people now employs only 320.